Friday, April 23, 2010

SEC Staffers Watched Porn as Economy Crashed

Ahh... the days of being dismissed as a naive, hotheaded young radical by my neo-liberal economics teacher, and his beloved regulatory agency. Hmmm... wasn't that the same guy that said Green Capitalism would solve our environmental problems? hmmmm.... At least this shit never happens...

WASHINGTON – Senior staffers at the Securities and Exchange Commission spent hours surfing pornographic websites on government-issued computers while they were being paid to police the financial system, an agency watchdog says.

The SEC's inspector general conducted 33 probes of employees looking at explicit images in the past five years, according to a memo obtained by The Associated Press.

The memo says 31 of those probes occurred in the 2 1/2 years since the financial system teetered and nearly crashed.

It was written by SEC Inspector General David Kotz in response to a request from Sen. Charles Grassley, R-Iowa.

The memo was first reported Thursday evening by ABC News. It summarizes past inspector general probes and reports some shocking findings:

• A senior attorney at the SEC's Washington headquarters spent up to eight hours a day looking at and downloading pornography. When he ran out of hard drive space, he burned the files to CDs or DVDs, which he kept in boxes around his office. He agreed to resign, an earlier watchdog report said.

• An accountant was blocked more than 16,000 times in a month from visiting websites classified as "Sex" or "Pornography." Yet he still managed to amass a collection of "very graphic" material on his hard drive by using Google images to bypass the SEC's internal filter, according to an earlier report from the inspector general. The accountant refused to testify in his defense, and received a 14-day suspension.

• Seventeen of the employees were "at a senior level," earning salaries of up to $222,418.

• The number of cases jumped from two in 2007 to 16 in 2008. The cracks in the financial system emerged in mid-2007 and spread into full-blown panic by the fall of 2008.

California Rep. Darrell Issa, the top Republican on the House Committee on Oversight and Government Reform, said it was "disturbing that high-ranking officials within the SEC were spending more time looking at porn than taking action to help stave off the events that put our nation's economy on the brink of collapse."

He said in a statement that SEC officials "were preoccupied with other distractions" when they should have been overseeing the growing problems in the financial system.

An SEC spokesman declined to comment Thursday night.

About 16 percent of men with Internet access at work admit to looking at online porn while at the office, according to a 2006 survey by Websense Inc.

Former SEC spokesman Michael Robinson said he shares the public's outrage about SEC staffers who enjoyed porn on the taxpayer dime when they were supposed to be keeping the markets safe.

"That kind of behavior is just intolerable and atrocious," said Robinson, now with Levick Strategic Communications. He said he expects SEC Chairman Mary Schapiro and her team are "very focused on" the issue.

Schapiro has had other worries in recent days. She has been parrying Republican attacks after announcing civil fraud charges Friday against Wall Street powerhouse Goldman Sachs Group Inc.

Agency officials had hoped the charges would mark a new era of tougher oversight of Wall Street. They followed high-profile embarrassments including the failure to catch Ponzi kings Bernard Madoff and R. Allen Stanford.

But soon after Goldman charges were filed, Republicans began questioning the timing of the announcement. The news came as the Senate prepared to take up a sweeping overhaul of the rules governing banks and other financial companies.

Republican lawmakers also accused the SEC of being influenced by politics. The SEC's commissioners approved the Goldman charges on a rare 3-2 vote. The two who objected were Republicans.

Schapiro is a registered independent who has been appointed by presidents of both parties.

Recorded from June-August 2005 at Buried Electric studios, v2.0.
Mastered by John Coursey at Unititled Studios,
Washington DC, in October 2005.
Released October 2005.

Irsch Tomb Ich

Recorded from September-October 2006 at Buried Electric 2.0. Except for track 12 (recorded jan 2006), and tracks 10 and 11 (recorded in july 2006).
Mastered by Xavier Swafford in November 2006 in Bethesda, Maryland.
Released Novemeber 2006.

Scars and Stripes

All tracks written and recorded from January-August 2007 at Buried Electric 2.0.
Mastered by Xavier Swafford from September-November 2007 in Bethesda, Maryland.Released December 2nd, 2007.

Cybernetic Overload

All songs are remixes of songs previous written and released by Bajskorv. These remixes were made at different times and by different artists from September 2007 to January 2009.
A few physical copies of this CD, with a shorter tracklist to allow for size, were produced in Jan '09 by Buried Electric.
Mastered by Xavier Swafford from January 2008- January 2009 in Bethesda, Maryland. Released January, 2009.